Every business needs to handle loads of digital, printed, and handwritten documents. Deriving insights from these documents and manually managing the process can be tough. To make things easier, companies need smart automated tools. This is where Intelligent Document Processing (IDP) solutions come in. It’s like a super tool that leverages sophisticated yet very useful technologies like Artificial Intelligence and Machine Learning to do tasks that are otherwise executed 100% manually. This makes dealing with documents faster, more robust, and more accurate.
This blog is like a guide that shows you what IDP is and how it can help your business.
Table of Contents
What is an Intelligent Document Processing IDP solution?
An Intelligent Document Processing (IDP) solution is like a clever assistant for handling paperwork in businesses. It uses smart technologies, such as Optical Character Recognition (OCR), Artificial Intelligence (AI) and Machine Learning (ML), to automatically manage,understand/ interpret and audit different types of documents.
IDP can read, sort, extract, audit/ verify and organize information from digital, printed, and even handwritten documents. It takes over manual tasks, making document processing faster, more accurate, and reliable.
On the other hand, “IDP solutions” refer to the specific tools or software applications that implement Intelligent Document Processing. These solutions are designed to automate tasks like reading, extracting, and organizing information from various types of documents, such as native digital or scanned (printed, or handwritten). IDP solutions are the practical applications that bring the concept of IDP into action, making document processing faster, more accurate, and less manual.
In essence, think of “IDP” as the idea or approach, and “IDP solutions” as the practical tools that turn that idea into reality.
Benefits of The Best Intelligent Document Processing Solutions
As per statistics, the market size for the intelligent document processing solutions will grow to $3.7 billion in the year 2026 from $0.8 billion in 2021. In fact, as per the Gartner press release report, a typical finance department in an enterprise can save 25,000 hours of rework yearly.
The best Intelligent Document Processing (IDP) solutions, such as KlearStack offer a multitude of benefits that can revolutionize how businesses handle their documents:
- Increased efficiency: IDP solutions can automate >98% manual tasks over time, like sorting, extracting data, and categorizing documents. This boosts productivity by freeing up valuable human resources for more strategic activities.
- Cost-saving: By reducing manual work, IDP solutions lead to 70% cost savings over time. You can allocate your workforce to more strategic roles, rather than spending their time and energy on mundane document tasks.
- Reduces the risk of human errors: Intelligent document processing reduces the scope of manual work, thereby reducing the risk of any kind of human error.
- Accuracy: With AI-powered algorithms, IDP solutions minimize up to 90% errors that can occur during manual data entry. This ensures that extracted information is highly accurate, reducing the risk of costly mistakes.
- Time Savings: IDP speeds up document processing significantly up to 500%. What used to take hours or days can now be done in a fraction of the time, allowing employees to focus on higher-value tasks.
- Scalability: As your business grows, so does the volume of documents. IDP solutions can handle a high volume of documents without compromising accuracy, making them scalable to your business needs.
- Data Insights: IDP solutions not only process documents but also extract valuable insights from the data. This can inform decision-making and provide a better understanding of your business processes.
- Compliance and Security: IDP solutions can enforce compliance by accurately processing documents according to regulations. Additionally, these solutions often have security measures in place to protect sensitive information.
What are the Best Intelligent Document Processing Solutions?
Here are some of the best intelligent document processing solutions :
Optical Character Recognition
Optical Character Recognition (OCR) tools play a vital role in identifying various types of text characters present within a digital image that originates from a physical paper document.
Let’s say you need to find a specific invoice from a particular supplier. Instead of flipping through piles of paper, you can submit the scanned copy or picture of the files to OCR and simply search for the supplier’s name or the invoice number in your computer’s search bar. The OCR-processed data pops up, and you find the required invoice within seconds.
Even better, you can upload this digital invoice data directly into your accounting software, reducing the chances of manual errors and saving you hours of data entry. This efficiency not only helps streamline your operations but also frees up your time to focus on growing your business.
So, in this scenario, OCR transforms the way you handle paper invoices, making your business more organized, efficient, and ready for the digital age.
Hyperscience
Hyperscience is a leading intelligent document processing solution that extracts data from messy, unstructured documents with exceptional accuracy. Its built-in quality assurance ensures error-free results.
Moreover, Hyperscience doesn’t stop at extraction; it transforms unstructured data into a structured format, enhancing automation and workflow efficiency.
Consider the implications: customer inquiries that receive prompt responses, order processing that’s swifter than ever, and data analysis that’s a breeze. All of this is powered by the structured data that Hyperscience seamlessly generates.
Document capture
Document capture is a vital facet of advanced intelligent document processing solutions. It collaborates seamlessly with scanning hardware to digitize paper records.
This platform extends its capabilities to digital files like text and PDFs, rapidly extracting crucial data. From streamlining invoicing in finance to expediting contract handling in legal contexts, its efficiency is undeniable, saving time and enhancing productivity.
Let’s take Adobe Scan as an example. With Adobe Scan’s document capture automation feature, users can quickly digitize physical documents using their mobile devices. This eliminates the need for manual data entry, reducing human errors and accelerating document handling.
This automation can lead to processing time reductions of up to 50% or more, allowing businesses to handle documents more efficiently and allocate resources to other critical tasks.
ABBYY FlexiCapture
With strong recognition capabilities and machine learning, FlexiCapture efficiently handles diverse unstructured data. It excels in translating various document types, from simple to intricate forms.
For example,
- FlexiCapture can process thousands of client information forms for financial institutions with an accuracy rate of over 95%.
- In the healthcare sector, it efficiently manages patient records, reducing manual data entry by up to 80% and minimizing errors.
- For logistics companies, FlexiCapture streamlines the processing of supplier invoices, resulting in a 50% reduction in processing time and a 90% increase in invoice accuracy.
Image processing
Image processing, a key solution of intelligent document processing solutions, employs algorithms to enhance and alter images. This technology optimizes documents for tasks like OCR and archiving, yielding two versions: one for machine-reading and another for human review.
In a recent analysis, the financial institution reported handling an average of 5,000 loan application forms per day. By utilizing image processing techniques, the institution has achieved an impressive 95% accuracy rate in extracting applicant information through its OCR systems. This efficiency has led to a reduction in processing time, with the OCR-enabled documents taking just 2 seconds to extract data from each form.
This dual approach accelerates loan processing while maintaining a seamless workflow for both technology and human involvement.
How to choose the best IDP solutions for your business?
When it comes to choosing the right Intelligent Document Processing (IDP) solution provider, certain Key Performance Indicators (KPIs) are essential for evaluating their effectiveness and suitability for your business:
Selecting the right Intelligent Document Processing (IDP) provider hinges on key performance indicators (KPIs):
- Accuracy: Reliable data extraction to minimize errors. For instance, KlearStack offers 90% accuracy in 90 days.
- Speed: Swift processing for enhanced efficiency. KlearStack eliminates 98% manual work, with its accelerated processing.
- Adaptability: Handling various document types and volumes. For instance, KlearStack automates 80% of unstructured date from documents like invoices, purchase orders, legal documents, ID cards, to name a few.
- Integration: Seamless fit with existing systems.
- User-Friendly: Intuitive interface for smooth adoption.
- Security: Compliance with data protection regulations.
- Support: Responsive assistance and training. In the case of KlearStack, it offers a dedicated account manager on your standard, premium, and enterprise levels
- ROI: Tangible cost savings and efficiency gains. KlearStack cuts down costs upto 70%, thus making it affordable for you.
Prioritizing these KPIs ensures the IDP solution aligns with your business goals.
Conclusion
These intelligent document processing solutions have immense benefits when it comes to running smooth business workflows. Thus, experts often advise you to use these solutions if you want to witness an improvement in your business success rate.
To get started, you can get relevant help using the best intelligent document processing solution from KlearStack. KlearStack’s IDP solution showcased how intelligent document processing can streamline workflows, reduce costs, and enhance business success.
Case Study: A leading bank was experiencing difficulties processing information that they received from their customers manually. It involved processing 1-3000 customers’ loan documents manually, 3 times a week. This took anywhere upto 15 hours of employees time daily, making them prone to 30% greater inaccuracies. Each document took around 2-4 hours to prepare and additional hours on actual payment.
Attempting to improve its customer’s loan documents processing, the bank decided to implement KlearStack, an Intelligent Document Processing (IDP) solution to streamline their process. Following were the results:
- 5,50,000 customers’ loan documents were proceessed in just 30 days.
- 70% cost-reduction in document processing operations
- 100% improvement in team productivity.
- 300% improvement in turnaround time for processing loans
- 15,000 human hours were saved per month.
Through KlearStack’s assistance, the bank was able to align with its business goals, enhance invoicing efficiency, and contribute to improved financial operations.
FAQs of best IDP Solutions
What is IDP tools?
IDP tools, or Intelligent Document Processing tools, are advanced software solutions that use AI and ML to automate tasks like data extraction and document management. They enhance efficiency, accuracy, and streamline workflows by transforming documents into structured data. IDP tools reduce manual effort, improve data accuracy, and expedite processing times, making them valuable assets for modern businesses.
What problem does IDP solve?
IDP, or Intelligent Document Processing, solves the problem of manual and error-prone document handling and data extraction. IDP tools leverage AI and ML to automate these tasks, extracting data from various document types accurately and efficiently. By doing so, IDP eliminates manual errors, reduces processing time, enhances data accuracy, and improves overall operational efficiency, making document management more streamlined and effective.
What are the techniques applied in IDP?
IDP utilizes OCR, NLP, ML, pattern recognition, and more to automate data extraction, classification, and content understanding from documents, streamlining processes and enhancing accuracy.
What is IDP in ML?
In Machine Learning (ML), IDP refers to “Intelligent Data Preprocessing.” It involves using AI-driven techniques to clean, transform, and prepare raw data before feeding it into ML algorithms. IDP optimizes data quality and structure, improving the effectiveness of ML models.
